With the fiscal year winding down, the city of Covington got word that it is “in good, good financial shape,” according to Miller Edwards of Mauldin and Jenkins CPAs, LLC, which presented its audit to the council Monday.
Edwards added that he always hesitates to use the word “great” but insinuated Covington’s finances were close.
“The general fund is quite healthy and there is about a two-year reserve,” Edwards said.
Edwards told the council there was a fund balance of about $25 million with assets of $21 million in cash and investment and a revenue of $11 million. Expenditures were around $21 million.
“No matter how you shake it, you’re general fund is in very good shape,” Edwards said.
When asked by council member Chris Smith if there was anything the city could improve on Edwards said there wasn’t much. If anything, the airport would be an area of improvement, but it often is with other municipalities.
“If I had to sit there and say ‘financially what can we do better,’ I would say airport operations. But the airport generally does not do well,” Edwards said. “It is something the community needs but it is not something that’s going to make money.”
Edwards did tell the council that it would be hit for about $7-7.5 million in asset liability due to unfunded liability causing roughly a $7.5 million gap with the pension plan.
“It’s nothing to brag about, but also it is nothing to say the sky is falling,” Edwards said. “It is something I want to make sure you know about. This would go in there as a debt because the equity will go down.”